I just got back from a wedding and it made me realize how few people know about the blockchain. Seriously, when I say the word cryptocurrency people are usually like, "Oh. Are you talking about that Bitcoin thing?" Yes, yes I am.
Steemit is a social media platform for cryptocurrency enthusiasts at this point. This community knows a thousand times more about crypto than the average person. It's easy to get fooled into thinking people are more educated about this up-and-coming technology when you're surrounded by a community that's into it.
I've convinced a few of my close friends of the importance of blockchain and to invest in crypto. They simply hand me cash; it's a completely verbal agreement. I'm a pretty trustworthy individual. I'm probably the best person with money that I know of. I've always been fascinated with currency ever since I was a child. This whole new cryptosphere situation is like a playground for me.
When I talk to people about the blockchain and why they should invest, they really want to, but they simply don't have enough information to do so. I've spent hundreds of hours researching crypto and there is no way for me to convey that information is a short period of time. Stock trading is complicated, but cryptocurrency technology is way more complex than anything the stock market has to offer. This opens a huge field of demand when it comes to brokering other people's money in the cryptosphere.
The funny thing about cryptocurrency is that they are all connected in a web. Everyone thinks they are competing against each other, but they are all helping and legitimizing the space. This is the value of open source technology: diversity and robustness.
The value of cryptocurrency is undeniable. Everyone complains about 27 whales controlling most of the inflation on Steem. Tell me, how many entities control the inflation of the United States Dollar. One! The Federal Reserve. If you think Steem is corrupt it's only because it's transparent. Imagine if the USD was transparent. You'd have a fit.
Because of these dynamics, even the worst cryptocurrency brokers are going to make money. The world has become so centralized and corrupt that even poor performing blockchains are better than the current system. The value of the entire space can only go up on a year to year basis.
People don't need a broker, but they are going to feel much more comfortable having one, to the point where they will not invest if they don't. I met two more people at the wedding willing to give me money on a promise, and a co-worker also gave me some cash for the same reason. Can you see what's happening here? Subconsciously, people are becoming more willing to trust an acquaintance than they are their own government.
In a strange twist of fate I was recently looking at https://etherscan.io/tokens. Just checking out those Ethereum tokens. There are a lot of blockchains that are actually ERC-20 tokens and I had no idea, but I'll have to save that topic for my next post. I was also looking at these tokens on my Binance account. The thing I wanted to point out here is the second coin on the list. This is no longer the case, but right underneath EOS in popularity was a coin called Genesis Vision.
It just so happens that right after I realized I could become a cryptocurrency broker I find a coin that revolves around being a cryptocurrency broker... lol what are the odds. As with many ERC-20 tokens, Genesis Vision is a promise coin and doesn't deliver anything right now. However, it's pretty obvious that if it does deliver it's going to be worth a lot more than it is now. A coin costs $18 but there are only 3.7 million coins in circulation, putting it at #183 currently on the coin market cap. I'll definitely have to grab a few just in case.
I don't know what it takes to become a legitimate cryptocurrency broker, but just like ICO laws the space is in a very questionable Wild West phase, legally speaking.
https://www.quora.com/How-can-I-become-a-Bitcoin-broker
Apply for a money transmission license in the states that require them by paying applicable fees and passing applicable tests. Conform to the requirements set forth by FinCEN, Anti-Money Laundering and Know Your Customer regulations designed to prevent money laundering, tax evasion, terrorist funding, and illegal transactions although technically if you're volume is under a certain threshold you're probably exempt from FinCEN requirements, but probably not MTL requirement depending on your state and pejrhaps special exemptions like being a real estate broker in Iowa is exempt from requiring an MTL currently. Or partner with an entity that does have an MTL.
However, if you want to fly under the radar I'm sure smart usage of privacy coins could be the way to go until the law becomes more clear.
I think a lot of the users on Steemit could be a crypto broker. Like I said, it wouldn't even be that hard because the space is so connected. It's basically all about selling the generic value of the blockchain to the ignorant public and convincing them that they need to enter the space. I think this is something that everyone at Steemit should be thinking about. Mainstream acceptance is the most important factor going forward.